Sequencing of LED initiatives Jörg Meyer-Stamer

The orthodox approach to sequencing LED Club du Sahel / OECDUN-Habitat World Bank European Union ILO / UNOPS

The ECOLOC approach

The ILO approach

LED sequence in EU-supported projects in Bosnia

The UN-Habitat approach

Sequencing of LED Initiatives (Result of workshop with stakeholders in South Africa) Diagnostic / Analysis Leadership Implementation Identification of projects + planning (some) Objectives Strategy Assets + Potentials Access to funds Facilitation Administrative + logistical support Impact measurement Support systems Mindset + Motivation Learning Stakeholders Coordinating body

A simple framework to conceptualise LED approaches Local Experience with LED No Local Experience with LED You have credibility locally You have little or no credibility locally ILO sequential approach HABITAT approach Focus at quick-win activities Exploratory activities Learning cycle ILO sequential approach or PACA

Dimensions of sequencing in LED Launching LED in a location for the first time Sequencing a specific LED initiative Sequencing an LED project...and the all too frequent real approach: 1. Training and capacity building 2. More training and capacity building 3. Strategic planning 4. More strategic planning 5. Adjustment of strategic planning to changed framework conditions 6. Training of the new officials that have been appointed in the meantime

A simplified typology of territorial economies Strong structures Weak structures Sustained growth Stagnation or Decline Declining territory Thriving territory Marginalised territory Emerging territory

Approaches to territorial development Strong structures Weak structures Sustained growth Stagnation or Decline Declining territory Thriving territory Marginalised territory Emerging territory Territorial Change Management Territorial Upgrading Initiative

The mesopartner approach: Conceptualizing LED as an iterative learning process Rapid appraisal (PACA) Planning for quick implementation Implementation Assessment Reflection Adjustment Planning for new action Implementation Assessment Reflection Assessment Reflection Adjustment Planning for new action Crisis of fragmentation

The European experience: Successful LED is an iterative process Source: Conceptual lessons from the LEADER programme (territorial develop- ment in rural regions in the EU)

The mesopartner perspective Launching LED in a location for the first time: Use PACA to get the ball rolling quickly = start a learning-by- doing process Introduce the Compass of Local Competitiveness after some months Introduce GENESIS later Sequencing a specific LED initiative: Use PACA or GENESIS to identify projects Use the Compass framework to manage the initiative

Build-up Kick-off Fieldwork + Results Workshop Presentation Event Way- forward Implementation of quick-win activities PACA Follow- up Work- shop Implementation of next round of activities (including more complex inter- ventions) GENESIS Strategy Formulation Targeted PACA- Exercises to opera- tionalise GENESIS Implementation of catalytic projects plus continu- ation of quick- win activi- ties

quick-win projects MonthActivities quick-win projects more ambitious projects quick-win projects catalytic projects Institutions Project management LED Forum LED Agency Effects Credibility Motivation Learning Trust Coordi- nation Ambition Competence Professio- nalisation Using PACA to initiate a territorial development initiative Lack of communication Distrust

Possible structure of a Two Year PACA Project FebruaryStart build-up MarchFirst PACA Exercise AprilImplementation MayImplementation JuneFirst appraisal JulyImplementation AugustFocussed PACA Exercise SeptemberImplementation OctoberImplementation NovemberSecond appraisal DecemberImplementation JanuaryImplementation FebruaryThird appraisal Launch GENESIS Implementation Complete GENESIS Focussed PACA Exercise March April May June Implementation Fourth appraisal Implementation July August September October November December Implementation Fifth appraisalYear 1 Year 2

Highlighting facts + percep- tions about the local economy Aligning information and perceptions Identifying opportunities for joint action Learning by doing Starting with LED: The learning cycle in PACA

Participatory Diagnostic or Audit (PACA, RALIS) Performance management: The Compass Strategy: GENE S I S Awareness building and training: SkilLED Connecting the mesopartner Tools

What is the sequence of activities in a PACA? Preparation: * Advance info * Hypotheses Kick- off work- shop Findings- Workshop: Elaboration of Diagnostic + Proposals Interviews Mini-workshops Presen- tation of Diag- nostic + Pro- posals Imple- mentation PACA-Project PACA-Exercise (2-3 weeks) Fieldwork (1-2 weeks)

Scottish Enterprise Assessing Results Securing Resources Recognising Best Placed Leaders Focusing on Priorities Implementing Action Planning Developing Strategy * Stakeholders include partners in industry, academia, education, research, government and other appropriate institutions Supporting Dialogue & Networking Learning and leadership Gathering Data - benchmarking - global trends - scenarios Engaging Stakeholders* Collaborating with Stakeholders Picturing the Cluster Scoping Initiating Assemble Resources Learning from good practice: The Scottish cluster approach

Adapting the Balanced Scorecard to PACA The Compass of Local Competitiveness Territory PACA (local) Compass Local sub- sector A Compass Local sub- sector B Compass Local cluster C Compass Project 1 Compass Project 2 Compass Regional value chain PACA balanced scorecard Value chain project A Compass Value chain project B Compass Project 1 Compass Project 2 Compass

Economic impact: * business retention * creation of jobs and income * generation of start-ups LED learning: * LED skills accumulation * alignment of goals and objectives * systematic M+E External perspective: * distinctive locational profile * improved locational marketing * better standing with funders * stakeholder relationships LED Process: * competent public service * membership-driven Chamber and business associations * effective communication between key players A possible Compass of Local Competitiveness for the PACA locality

Economic impact: * business retention * creation of jobs and income * generation of start-ups LED learning: * LED skills accumulation * alignment of goals and objectives * systematic M+E External perspective: * distinctive locational profile * improved locational marketing * better standing with funders * stakeholder relationships LED Process: * competent public service * membership-driven Chamber and business associations * effective communication between key players The Compass perspective: Possible quick-wins with PACA

Similarities between LED and business evolution: an analogy to Griener’s model PhaseNetworkLassoKick-off Focus Segment activities Delegate responsib. Pro-forma strategy Get projects under control formulate strategy Get LED projects moving Governance pattern Central information exchange, decentral responsibilities Clear distribution of tasks and responsib. Creation of Agency Informal M+E Emerging formalization InformalInexistent Reward system Identification with project objectives Latitude of decision Discipline + suffering Salary Excitement Personal motivation CrisisNetwork failure Mushrooming co- ordination and strategizing effort De-motivation of volunteers Fragmentation Lack of co-ordination

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